Understanding Additional Living Expenses Coverage

Many renters’ insurance policies include additional living expenses (ALE) coverage, which helps cover the cost of temporary lodging and other necessities, such as meals or extra gas expenses if your temporary relocation increases your commute to work.

However, some policies may require you to purchase additional coverage to access ALE benefits. An agent at Keltner Insurance can help you understand what your policy covers and whether you need to add any additional coverage.

Covered Events and Limitations

Most renters’ insurance policies in Memphis, TN, specify covered perils, such as fires or wind damage. However, certain events, like floods or earthquakes, may not be covered. If your home becomes uninhabitable due to an event that isn’t included in your policy, your ALE claim will likely be denied.

Coverage Limits for Temporary Lodging

While ALE coverage can help with temporary accommodations, it doesn’t mean you can book luxurious stays and expect full reimbursement. Most policies will cover the difference between your usual living expenses, such as rent, and the cost of temporary accommodations. Additionally, you may need to provide proof of the room you’ve booked.

For example, if you book an Airbnb that costs the same as your regular rent, you may not receive reimbursement. Similarly, weekly grocery expenses may not be covered since you would have incurred those costs regardless of the emergency.

Renters’ insurance can be complex when it comes to temporary lodging. The experienced agents at Keltner Insurance are here to help you understand your policy’s coverage and exclusions. Contact us today to learn more. We proudly serve the Memphis, TN, area.